Network Infrastructure - Turkey

Turkey

Revenue in the Network Infrastructure market is projected to reach US$1.56bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.13bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.78%, resulting in a market volume of US$1.97bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$43.11 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m in 2024).

Key regions: India, China, Brazil, Indonesia, Japan

Definition:

The Network Infrastructure market focuses on hardware resources essential for service provider and enterprise networks. This market specifically focuses on solutions designed for the complex networking requirements of businesses and organizations, setting aside options like consumer-grade networking hardware products such as basic WIFI routers and network switches. These network infrastructure components are crucial in environments where reliable and secure connectivity, as well as efficient network operations, are paramount, establishing them as a fundamental part of the IT infrastructure in various industries.

Structure:

The Network Infrastructure market is structured in two markets based on the services model provided by the companies.

Service Provider Network Infrastructure covers the hardware resources of telecommunication service companies that enable wired and wireless network connectivity and communication to transfer voice and data.
Enterprise Network Infrastructure covers the hardware resources that enable wired and wireless network connectivity, communication, operations, and management of enterprises.

Additional Information:

The Network Infrastructure market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Network Infrastructure market include companies such as Huawei, HPE, Cisco, and Ericsson.

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Analyst Opinion

The Network Infrastructure Market within the Data Center Market in Turkey is experiencing subdued growth, impacted by factors such as slow adoption of digital technologies, lack of health awareness among consumers, and limited convenience offered by online services. These challenges are more prominent in the Enterprise Network Infrastructure sub-market, while the Service Provider Network Infrastructure sub-market shows some growth due to increasing demand from telecom companies. However, overall growth in the market is limited due to these factors.

Customer preferences: As digitalization continues to accelerate in Turkey, there is a growing demand for reliable and secure network infrastructure within the data center market. This is driven by the increasing reliance on cloud-based services, remote work arrangements, and the adoption of emerging technologies such as 5G and Internet of Things (IoT). Additionally, there is a rising trend towards data sovereignty and local hosting, leading to the development of more robust and decentralized network infrastructure solutions.

Trends in the market: In Turkey, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based data storage solutions. This trend is driven by the increasing adoption of digital transformation strategies by businesses, as well as government initiatives to promote data center investments. Additionally, there is a growing focus on sustainability in the market, with a shift towards energy-efficient and eco-friendly infrastructure. These trends are significant as they reflect the growing importance of data in the digital economy and have implications for industry stakeholders, including data center providers, technology vendors, and government regulators.

Local special circumstances: In Turkey, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's strategic location as a bridge between Europe and Asia. This has led to a high demand for data centers from international companies looking to establish a presence in both regions. Additionally, Turkey's rapidly growing digital economy, driven by government initiatives and a young tech-savvy population, has created a need for robust network infrastructure to support the increasing demand for online services. Furthermore, Turkey's strict data privacy laws and regulations have also played a significant role in shaping the data center market, with companies investing in secure network infrastructure to comply with these regulations and ensure the protection of sensitive data.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Turkey is heavily influenced by macroeconomic factors such as government initiatives, digital transformation strategies, and investment in ICT infrastructure. The country's strong economic growth, favorable regulatory environment, and rising demand for digital services are driving the growth of the market. Additionally, the increasing adoption of cloud-based solutions and the growing number of connected devices are also contributing to the demand for network infrastructure within the data center market. Furthermore, the government's investments in building a robust digital infrastructure and promoting e-governance are expected to further fuel the growth of the market in Turkey.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.